Change in law fuels Canadian bond boom

By

Vivek Ahuja

February 20, 2006 5:00 p.m. GMT

The Canadian debt market is dwarfed by its US neighbour but is growing fast, following a decision to scrap 30-year-old restrictions on foreign investment.

US and European borrowers raised 20 bonds denominated in Canadian dollars by February 15, up from a dozen last year. Volumes have risen by a third to $4.5bn (€3.8bn) equivalent, according to Dealogic, a banking research company.